Contracts & ExecutionQuestion 156 of 1632
A bid includes $60,000 in labor and materials, $12,000 in overhead, and the contractor wants $8,000 profit. What is the total bid price?
a.$60,000
b.$68,000
c.$72,000
d.$80,000
Explanation
The bid price equals direct costs plus overhead plus profit: $60,000 + $12,000 + $8,000 = $80,000. Overhead and profit must both be added on top of direct job costs.
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Related questions on this topic
- A contractor's direct job costs are $80,000 and the contract sells for $100,000. What is the gross margin percentage on this job?
- A contractor wants a 30% markup on a job whose costs are $50,000. What selling price should the contractor bid?
- A contractor needs a 25% gross margin on a job. If the direct costs are $30,000, what selling price achieves that margin?
- A contractor's annual overhead is $120,000 and projected annual direct job costs are $600,000. What overhead rate should be applied to each job's direct costs?
- A contractor's fixed overhead is $90,000 per year and the average gross profit margin on jobs is 30%. How much sales revenue is needed to break even on overhead?
- A contractor adds a 5% contingency to a job estimated at $200,000 in direct costs. How much money does the contingency add to the estimate?
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)